Hormel Foods Corp., Austin, Minn., entered into a definitive agreement to acquire Columbus Manufacturing, Inc., an authentic, premium deli meat and salami company, from Chicago-based Arbor Investments for approximately $850 million. This strategic acquisition positions Hormel Foods as a total deli solutions provider and enhances its other deli brands such as Hormel, Jennie-O, Applegate and Di Lusso.

“We are pleased to add Columbus to the Hormel Foods family. Columbus has an outstanding reputation in the food industry and is well-positioned in the advantaged retail deli category,” says Jim Snee, president and CEO at Hormel Foods. “Columbus is capitalizing on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavors and products.”

“The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization,” Snee says. “This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers and consumers. The synergies we can unlock with this acquisition are clear, and I’m excited for the next evolution of our company.”

“As a Millennial-focused brand, Columbus has generated category-leading growth through a passionate commitment to quality, simplicity and time-honored recipes,” says Joe Ennen, chief executive officer of Columbus Manufacturing, the San Francisco-based maker of Columbus Craft Meats. “In Hormel, we are joining an organization whose values and culture perfectly align with our own.”

The company will continue to operate from California and will report into the refrigerated foods segment.